Govt says to take 'strong' steps to stabilise dollar rate

Economic minister Mohamed Saeed on Thursday assured that the government will take strong measures this year to stabilise the dollar exchange rate and eradicate the black market.

Saeed made the remarks at the first session of the government's 'Aha' forum, which allows the public to ask questions to ministers. The forum was held at Sultan Park Thursday evening.

Replying to the question, Saeed said:

Saeed acknowledged although the official exchange rate of the dollar is MVR 15.42, but dollar is bought and sold in the black market at a much higher rate. The government will start working to stabilise the exchange rate of the dollar this year, he said.

"The president has decided to take very targeted steps to stabilise the exchange rate of the dollar. That work has already started," Saeed said.

However, he did not elaborate on the measures.

The Maldives Monetary Authority (MMA) has drafted a new foreign exchange rule to eradicate the black market in the previous government. However, the implementation of the rule was delayed due to the economic shocks caused by the Russian-Ukrainian war.

The measures discussed at the time were:

Saeed said the government will first open applications for loans as part of a MVR 50-100 million programme specifically targeted for women. The loan will also include a grant component with the assistance of foreign financial institutions, he said.

In addition, Saeed noted that a certain percentage of the loans will be allocated for services aimed at children with special needs.

However, Saeed did not say when the loan scheme would be introduced.

The most common complaint at the forum was that foreigners, both legal and illegal, are entering small and medium enterprises in Maldives. Saeed was asked questions to clarify the government's policy to prevent it.

Saeed said the biggest obstacle to stopping such businesses is that the business is registered in the name of a local. On paper, the foreigner serves as an employee of the locally-registered business, he added.

In addition, farmers in island also rent fields to foreigners on a monthly basis, he said.

"We cannot solve this alone. This will be solved by the cooperation of both the businesses and the public," he said.

Saeed said the police and all relevant agencies should work together to arrest undocumented expatriate workers and deport them from Maldives. A register of foreigners will be compiled in each island in collaboration with the decentralisation ministry, he said.

"The ministry will do everything it can to implement these. This government will not let the foreign business be ignored. We will do everything it can at the government level," the minister said.